Alameda Research’s Worldcoin holdings dwindle amid bankruptcy challenges

Defunct crypto trading firm Alameda Research moved 205,387 Worldcoin (WLD) tokens worth $352,000 to Binance on Thursday. This is the firm’s first transfer of WLD tokens since vesting 25 million tokens from Worldcoin a year ago.

Following Thursday’s transfer, Alameda now holds 24.8 million WLD tokens worth around $43 million, according to Lookonchain. However, it will likely transfer its remaining holdings to centralized exchanges over the coming days. Such transfers are common when a crypto holder wants to liquidate their assets.

Alameda likely to liquidate its WLD holdings

FTX and Alameda, in particular, have transferred billions of cryptocurrencies over the past 12 months as their liquidators accumulate cash to pay creditors. The bankrupt exchange recently claimed that it has between $14.5 billion and $16.3 billion in cash available to refund 98% of creditors up to 118% of their lost assets.

The on-chain balance of wallets connected to FTX and Alameda supports this claim. Per Arkham Intelligence data, the bankrupt exchange now has only $391.45 million in crypto holdings, most of which is in its native token, FTT. On the other hand, Alameda Research has $240.43 million worth of crypto assets across all identified wallets.

Meanwhile, this development follows a recent court order that the bankrupt FTX exchange and Alameda should pay $12.7 billion to creditors as repayments and compensation for their losses after the exchange collapsed.

Worldcoin price rises despite potential sell-off

Worldcoin token has increased by 10% today despite potential liquidation and likely selling pressure that could follow. The surge in its value suggests that the market is maintaining its upward trajectory following the recent crypto market rebound, with Bitcoin crossing $60,000 and Ether passing $2,500.

However, given the market volatility in the past week, it is hard to determine whether this positive sentiment will prevail. The WLD token has struggled since reaching its peak of $11.74 in March this year. At that time, the value of Alameda WLD holdings was $293.5 million.

Today, WLD is down 85% from that peak, with a 24% decline in the last 14 days alone. This plunge in value is due to multiple reasons, including regulatory opposition to the Worldcoin registration process, the project’s failure to meet the target number of registered users, and the recent token unlocks that inflate supply.